Samsung Electronics relies on artificial intelligence to outpace global growth in smartphones and home appliances

Samsung Electronics plans to strengthen its on-device AI business, aiming to outpace global market growth in the consumer electronics sector this year.

The global consumer electronics market for smartphones, TVs and home appliances will grow by about 3% in 2025, Samsung Electronics CEO Jung Hee Han told CNBC’s Sherri Kang.

Samsung, the world’s largest maker of smartphones and TVs, expects its mobile business to grow 4% to 5% this year, while growth in its mobile business unit is also likely to accelerate, said Han, who is also head of its electronics experience division. TV and home appliances. DX) Samsung Electronics Division.

Samsung Electronics is intensifying efforts to Connecting its devices with artificial intelligenceAnd installing artificial intelligence chips in refrigerators, washing machines and robotic vacuum cleaners.

It is also working to enhance the AI ​​functions in its premium flagship smartphone models, such as the Galaxy S24 series, which Multiple features support artificial intelligence Including real-time translation Some phone calls are in foreign language.

This comes as Chinese brands like Huawei and Xiaomi They emerged as serious contenders Samsung by offering advanced smartphones at much lower prices.

Han said during the interview that competition from Chinese companies is “beneficial” to Samsung and consumers, noting that the company aims to differentiate its products with greater safety and comfort, rather than lowering prices.

Samsung announced a Major cabinet reshuffle in Novemberappointing Jun Young-hyun as co-CEO and head of the memory chip division, sharing leadership duties with Han.

The South Korean technology giant, once the dominant force in the memory chip sector, has fallen behind SK Hynix in the race to supply high-bandwidth memory chips, or HBM chips, which are a key component of artificial intelligence leader Nvidia.

Samsung will reportedly release it Fourth quarter revenue Operating profit forecasts are due on Wednesday, ahead of the release of quarterly results in late January.

Samsung’s operating profits for the December quarter It is expected to reach 8.2 trillion won ($5.6 billion).According to Reuters estimates, this represents a significant rise from the 2.8 trillion won reported a year earlier, but down from 9.18 trillion won in the previous quarter.

In October, June, head of the semiconductor department, He issued a rare apology for the disappointing company Third quarter performance.

Last year, shares of the South Korean giant fell 32%, according to LSEG data, lagging the broader Kospi benchmark index’s 9.6% loss.

Han said during the interview that the stock price “has never been this low,” adding that the company has a “value appreciation” plan, aimed at increasing shareholder returns. He said the plan would be announced “one by one when it’s ready,” according to a CNBC translation of his statement in Korean.

Investors are hoping Samsung will close the gap with HBM and get more serious about the “valuation appreciation” scheme, Philip Wall, head of research at Rayliant Global Advisors, said in a note on Monday, while adding that a 10 trillion won share buyback may help the plan. Stock price stability.

Company She revealed a surprising plan in November to buy back about 10 trillion won worth of shares over the next 12 months.

A longer-than-expected delay in Nvidia’s approval of HBM chips and weak PC sales could continue to pose downside risks, Citi analyst Peter Lee warned in a Dec. 31 note. He maintained a “buy” rating on the stock while lowering his price target to 83,000 won from 87,000 won.